Steps

​Authority f​or Approving PCA.
Delegates his/her authority to HO for approving the PCA for any single advance up to $25,000 per PCA Custodian and per one-time project activity of limited duration, not exceeding two weeks.   

Responsible Party

Treasurer

Template/Guideline

Explanatory Notes

This delegation provides the flexibility for a specific project requirement that cannot be met by the normal banking arrangement. However, this delegation also demands accountability of the CO that issues PCAs to ensure timely closure of the PCAs 30 days (one month from the date the advance was issued.

Steps

​Retains the authority to approve any single PCA higher than $25,000 based on the CO's request.  The key considerations in approving such requests are:

1. Business needs
2. Alternative solutions not available.​
3. Security assessment and arrangement (must identify secured route for travel and escort).
4. CO's track record in timely and accurate closing the PCAs.
5. The CO must submit the AP Data Entry Form signed by respective officers as the supporting documents​ 

Responsible Party

Treasurer

Template/Guideline

Explanatory Notes

Caution: Failure to timely and accurately reverse PCA, record the expenses, and reconcile GL PCA Account 16108 may lead to inaccurate valuation in the financial statements.  
Caution: Failure to make proper security arrangement may lead to the delay in Treasurer’s approval of higher PCA amount until the situation is corrected by the CO

Steps

PCA Custodian Appointment
Appoint the PCA Custodian  

Responsible Party

Template/Guideline

Explanatory Notes

Following Appointment criteria apply:
Staff holds UNDP Fixed Term Contract (FT) or holder of Personnel Services Agreement (NPSA/IPSA) with limit up to $5,000 (only RR can appoint NPSA/IPSA, not to be further delegated).
Staff is competent to fulfill the responsibilities including safeguarding, proper use of, and timely accounting for the PCA.
Staff signs the PCA Appointment Form.
 Staff agrees to fully report and account the PCA 30 days after the advance has been issued.

Steps

Physical Security for PCA
Ensure, jointly, the security of the PCA as follows: 

Responsible Party

Template/Guideline

Explanatory Notes

DRR(P) is responsible for the security assessment at project activity site and PCA Custodian appointment.
DRR (O) is responsible for security arrangement (working with UNDSS or a third party escort service if applicable) 

Steps

Issuance and Encashment of the PCA Cheque
Set up the one-time PCA Custodian as a ‘Supplier’ in Quantum.

Responsible Party

Template/Guideline

Explanatory Notes

Steps

Raise an Invoice to the Custodian/supplier as type “prepayment” set up as a “temporary Prepayment” by checking off the flag “Allow prepayment application” with proper supporting documents​

Responsible Party

Template/Guideline

Explanatory Notes

Steps

Payment will be processed by GSSC.

Responsible Party

Template/Guideline

Explanatory Notes

Steps

Withdraw the cash and safekeeps the advanced cash until completing the final disbursements and accounting

Responsible Party

Template/Guideline

Explanatory Notes

The PCA Custodian is responsible for safekeeping of PCA between the time of receipt of cash and final disbursements of the cash (if the third party provider is not used for transporting and distributing the cash) as well as any unused cash advance until the amount is returned to DRR (O) 

Steps

​Disbursing PCA Maintain invoices and receipts for purchases

Responsible Party

Template/Guideline

Explanatory Notes

Steps

Maintain the PCA Pay List including the beneficiary name, organization affiliation (if applicable), phone ID name and number, and amount of the cash disbursement

Responsible Party

Template/Guideline

Explanatory Notes

Steps

Verify validity of the identification before making cash disbursement to each intended recipient.

Responsible Party

Template/Guideline

Explanatory Notes

Steps

Collect the signature from each recipient acknowledging the receipt of payment from UNDP

Responsible Party

Template/Guideline

Explanatory Notes

Steps

Calculate the total for all disbursements made and determine the unused balance for PCA

Responsible Party

Template/Guideline

Explanatory Notes

Steps

Submit the PCA Pay List, invoice/receipts, along with unused PCA balance, if any, to DRR(O) immediately upon completion of the activity

Responsible Party

PCA

Template/Guideline

Explanatory Notes

Steps

Internal Controls for PCA
Disburse the cash to authorized beneficiaries for Qualifying PCA Expense only for the specific one-time project activity

Responsible Party

Template/Guideline

Explanatory Notes

Separation of duties must be maintained at all times for PCA request, PCA approval, AP non-PO Invoice creation and approval, and issuance of PCA

Steps

Maintain the Pay List with supporting documents

Responsible Party

Template/Guideline

Explanatory Notes

This will include records to identify who was paid, for example by retaining copies of identification of the beneficiaries

Steps

Submit all invoices and receipts to the DRR(O)

Responsible Party

Template/Guideline

Explanatory Notes

Steps

Submit the final accounting 30 days after the advance has been issued, including returning the unused PCA cash balance and documents listed in 2 and 3 above to DRR(O). 

Responsible Party

Template/Guideline

Explanatory Notes

Steps

Reviews  steps above and ascertain if the PCA is disbursed according to the procedures and is fully accounted for and proceed to perform the closure accounting entries. 

Responsible Party

Template/Guideline

Explanatory Notes

The review should include phone calls to beneficiaries selected randomly to verify the actual payments​

Steps

Use the PCA Status Monitor (Annex 6) to ensure that all onetime project activities concluded by 23rd do not have outstanding PCAs at the last day of the month

Responsible Party

Template/Guideline

Explanatory Notes

Annex 6: PCA Status Monitor​

Steps

Review the PCA Status and Monitor at each month end.

Responsible Party

Operations Manager

Template/Guideline

Explanatory Notes

Tips: The Operations Manager must assign one Finance Associate the responsibility to monitor all PCAs issued and ensure proper actions listed above take place within the required timeline.

Caution: All PCAs are to be fully closed and accounted 30 days after the advance has been issued.  This is very important to the fair and accurate presentation of a) UNDP financial position and operating results (reflected in the Balance Sheet and Income Statement Accounts) and b) UNDP’s project delivery status and balance for donor reporting under IPSAS at all times. 

N.B.: FX gain/loss adjustment entries are monitored by GSSC Cash Management team on a monthly basis
 

Steps

Reconciling Outstanding PCA Balance with GL Balance for PCA
Ensure that the Invoice and AR/Credit Memo use the correct COA

Responsible Party

Template/Guideline

Explanatory Notes

Caution: pay attention to the currency in GL.  Reconciliation is to be done for the currency for which the PCA is issued.  Typically, this means local currency for majority of the PCAs

Steps

Run AAA report for GL Account 16108 for the last date of each month

Responsible Party

Template/Guideline

Explanatory Notes

Steps

Reviews and confirm that the balance in GL Account 16108 represents the outstanding PCAs that have not concluded as of the 23rd of each month

Responsible Party

Template/Guideline

Explanatory Notes

Steps

Review the reconciliation completed by the assigned Finance Associate.  If there any concerns for unclosed PCAs, he/she must take appropriate actions to ensure the internal controls for PCA are followed

Responsible Party

Operations Manager

Template/Guideline

Explanatory Notes

Steps

Prepare, at each quarter-end or at each UNDP financial closure date, the PCA Reconciliation Schedule 

Responsible Party

Template/Guideline

Explanatory Notes

Annex 7: PCA Reconciliation Schedule​​
 

The GL Account 16108 balance must be substantiated by the PCAs that are outstanding in details.

Steps

Review and certify the PCA Reconciliation Schedule

Responsible Party

Operations Manager

Template/Guideline

Explanatory Notes

Caution: The above steps are critically important to ensure UNDP cash advances are accounted for timely and accurately

Steps

Ensure routine monitoring of GL Account 16108 for data quality and completeness

Responsible Party

Head of Office

Template/Guideline

Explanatory Notes